Shah Deniz consortium awards three major offshore contracts for SDC project

The Shah Deniz consortium has awarded three major contracts for offshore works to implement the Shah Deniz Compression (SDC) project. 

The contracts, valued at approximately $700 million, were awarded to the joint venture Saipem/BOS Shelf, Caliber.Az reports via the British oil and gas company bp. 

Under the agreements, the scope of work includes the transport and installation of the entire SDC platform—a new 19,000-ton facility to be installed in the Caspian Sea—as well as the design, supply, construction, and installation of subsea structures, including around 26 kilometres of new offshore pipelines connecting the SDC platform to the existing Shah Deniz infrastructure. 

All onshore construction will take place at the Baku Deepwater Foundations Plant, operated by BOS Shelf. Offshore construction and installation will utilise two Azerbaijani flagship vessels: Khankendi, a modern subsea construction vessel owned by the Shah Deniz consortium, and the pipeline barge Israfil Huseynov, owned by the Azerbaijan Caspian Shipping Company (ASCO). 

Both vessels will be operated by Saipem under the terms of the new contracts. 

According to the company, offshore works are expected to begin with pile installation in the thrid quarter of 2026, with completion planned for 2029. 

The $2.9 billion SDC project, the next stage of development for the giant Shah Deniz gas field, is designed to access low-pressure gas reserves, enhance extraction, and maximise resource recovery. 

It is expected to enable the additional production of approximately 50 billion cubic meters of gas and 25 million barrels of condensate from Shah Deniz for export.

By Khagan Isayev